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Saturday, August 27, 2022

CBN releases $265 million of held foreign airlines’ funds to avert aviation collapse

The release comes as international airlines began a wind down of their operations in the country.

• August 26, 2022
Godwin Emefiele and foreign airlines
Godwin Emefiele and foreign airlines

Central Bank said it has released $265 million to foreign airlines amid threats by the international carries stop operations in Nigeria over the trapped funds

The apex bank’s spokesman, Osita Nwanisobi, disclosed this on Friday, Channels TV reported.

Mr Nwanisobi said CBN governor Godwin Emefiele and his team were genuinely worried about the brewing crisis in the sector and what it portends for travellers as well as the country.

He reaffirmed that the bank was not opposed to any corporation repatriating its funds from the nation, but that the bank demands an orderly withdrawal for those who were interested.

According to the breakdown, $230 million was granted as special Forex intervention, while another $35 million was issued through the Retail SMIS auction.

The release comes as international airlines began a wind down of their operations in the country, citing inability to repatriate funds to their home countries.

Emirates Airlines had earlier announced that it will be suspending flight operations in Nigeria from September 1 after several failed attempts by the foreign airline to recover $85 million of its over $600 million trapped in Nigeria.

In a related development, British Airways on Friday closed its inventory on its Nigerian operations, a move incident on the failure of the airline to repatriate funds from ticket sales out of Nigeria.

The International Air Transport Association (IATA) had earlier voiced reservations about the Federal Government of Nigeria’s decision to prevent international airlines from remitting ticket sales proceeds of $450 million (N188.6 billion) into their home nations.

IATA urged the Buhari regime to prioritise the release of the funds before more damage is done, noting that the failure to do so will affect Nigeria’s access to its services.

However, the latest development might cause Emirate Air and British Airways to rescind their pull out decisions.

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